J-Long Group Limited Delays Share Consolidation Process

J-Long Group Limited Delays Share Consolidation Process

Hong Kong — J-Long Group Limited (NASDAQ: JL), known for distributing high-quality garment trims including heat transfers, fabrics, and woven labels, has announced a postponement regarding the record date and effective time for its proposed reverse stock split. This adjustment will remain effective until the company secures the necessary approval from the Nasdaq Stock Market.

Understanding the Share Consolidation

The plan for the reverse stock split is implemented at a ratio of 1-for-10. This decision was previously sanctioned by the company's stockholders during a Special Meeting held in November. They granted the board the authority to finalize the split ratio and timing of the split. The split aims to bolster the market price of J-Long's Ordinary Shares to comply with Nasdaq's minimum price requirements.

Change in Share Structure

Following the share consolidation, the structure of the Ordinary Shares will undergo significant changes. For every ten shares currently held, shareholders will receive one new share. The company’s total authorized shares will decrease dramatically from 30 million to just 3 million, altering the par value to $0.000375 per share. Notably, fractional shares will not be issued, so any shareholder entitled to a fraction will see their entitlement rounded down to the nearest whole share.

What Does This Mean for Shareholders?

This transition will affect all outstanding stock options and warrants. Proportional adjustments will apply to both the number of shares and their corresponding exercise prices. This ensures that the value received by shareholders remains equitable despite the consolidation.

Process for Shareholders

The company's transfer agent, VStock Transfer, LLC, will facilitate the reverse stock split. For those holding shares in book-entry form, no actions are necessary to receive the new shares post-split. Shareholders keeping their investments in brokerage accounts will find their positions adjusted automatically in alignment with each broker's procedures. This systematic approach aims to minimize confusion and streamline the process.

Future of J-Long Group Limited

Looking ahead, J-Long Group Limited is committed to enhancing its market position and ensuring its compliance with Nasdaq requirements. By streamlining its share structure, the company aims to attract more investors and enhance shareholder value. This strategic move is expected to create a more favorable trading environment for its Ordinary Shares.

Shareholder Communication

J-Long Group has established communication channels for its investors. CEO Edwin Chun Yin Wong is available for direct inquiries, emphasizing the company’s transparency and commitment to keeping shareholders informed about significant changes and developments.

Frequently Asked Questions

What is the purpose of the reverse stock split announced by J-Long Group Limited?

The reverse stock split aims to increase the market price of the company's Ordinary Shares, ensuring compliance with Nasdaq's listing requirements.

How will the reverse stock split affect current shareholders?

Shareholders will receive one new share for every ten shares they currently own. Their total number of shares will decrease, but the overall value should remain consistent.

Who will manage the reverse stock split process?

VStock Transfer, LLC will serve as the transfer agent for J-Long Group, facilitating the smooth execution of the share consolidation.

What changes will occur to the number of authorized shares?

The number of authorized Ordinary Shares will be reduced from 30 million to 3 million following the completion of the reverse stock split.

How can shareholders get more information about the changes?

Investors may reach out directly to CEO Edwin Chun Yin Wong or keep abreast of updates through official company communications for the latest information.

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